Velocity Trades – Are They Safe?

Website URL: https://www.velocitytrades.com

Founded: 2019

Regulations: Unregulated

Languages: English

Deposit Methods: Credit and Debit Cards, Skrill, Neteller

Minimum Deposit: $10

Free Demo Account: Available

Number of Assets: N/A

Types of Assets: Forex, VPS, Stock Indices, Commodities

Trading Accounts and Conditions

Velocity Trades offers you the following trading accounts:

• Cent: To open a Cent account, all you need to do is make a deposit of $10. The spreads start at 1.8 pips.
• Classic: To use the Classic account, you need to make a deposit of at least $20. The spreads offered for this account starts at 1.5 pips.
• Standard: For this account type, you need to make a minimum deposit of $100, and the spreads stand at 1.2 pips.
• ECN: For this account, the minimum deposit that you need to make is $500. The spreads offered for this account is 0.4 pips.

The leverage ratio offered by this broker is a maximum of 1:400.

Velocity Trades – Advantages

Here are the advantages we found with Velocity Trades:

• High Leverage Ratios:

Velocity Trades offers their clients a maximum leverage ratio of 1:400, which more than enough for traders with all types of strategies to carry out their trades.

We also need to point out at this point that such high leverages have been banned by most financial regulators due to the very high risk of losses. In fact, Australia is the only jurisdiction that still allows such high leverage levels.

• Low Minimum Deposit Requirement

You only need to deposit $10 to begin trading on Velocity Trades’ account, which is markedly lower than the market average. The standard in the market for minimum deposits range from $100 to $250, so the amount required by this broker is very attractive.

Velocity Trades – Disadvantages

Besides the fact that this broker offers high leverage ratios, there isn’t much else that is positive about Velocity Trades. Here is a list of all the disadvantages we found with this broker:

• Unregulated Broker

On their website, Velocity Trades claims to be registered in St. Vincent And the Grenadines (SVG), which makes them an offshore broker. The financial regulator of SVG has issued a public statement that they do not offer licenses for forex brokers, so this means that while Velocity Trades may be registered in this jurisdiction, it does not have the necessary license to offer the financial services that it does.

Trading with an unregulated broker is dangerous since such brokers are not bound by the law and so can do what they want with your funds.

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• Clone Firm

A lack of regulation is not the only thing that indicates that Velocity Trades cannot be trusted. This broker has lifted the corporate information from a regulated firm by the name of Velocity Trade, including their name.

This is a common strategy adopted by scammers. They use the details of a legitimate company to attract unwary investors and then scam them. Such firms are called Clone Firms.

Therefore, the fact that Velocity Trades has done this clearly shows us that this broker is a scammer.

• MetaTrader 4 Platform Provided by Third Party

We usually consider it a huge point in favor of a broker if they provide their customers the use of the MetaTrader 4 platform. This is because the MT4 platform is the world’s most popular trading software and more than 8 on 10 traders use this platform for carrying out their trades.

The MT4 platform is not just easy to use, but it also comes with added features (technical market indicators, trading bots and charting options) that make trading at all levels much easier.

However, in Velocity Trades’ case, we would call it a disadvantage since this software isn’t offered by the broker, but by an independent third party. This is another thing that is not normal. Legitimate brokers offer their trading platforms in their own names.

• Spreads Too Good to Be True

When we checked this broker’s demo account, we found out that the spreads for the EURUSD forex pair were floating at 0.1 pips to 0.02 pips. This is a ridiculously low spread, since it would mean that the broker would suffer losses.

Such a low spread is just another gimmick to attract traders into investing with them.

• Trading Bonuses Offered

Velocity Trades offers their clients trading bonuses, which is another black mark against them. Trading bonuses have been forbidden in many jurisdictions because they are so unfair to traders.

The bonus offered is so attractive that many traders end up signing up for it. However, once you have done so, then you will need to meet the trading turnover target set by the broker to be able withdraw your funds. If you are unable to meet that target, then your withdrawal request is denied. And since these targets are so high, there are very few traders who are able to meet them, which means that they are never able to withdraw their money.

No legitimate broker uses such tactics and never prevents you from withdrawing your own funds.

Conclusion 

Velocity Trades is a clear-cut scammer and you should not trust this broker at all. Not only is this broker offering their financial services illegally, but they are also a clone firm, using a legitimate company’s corporate information to fool customers into trading with them. Furthermore, this broker doesn’t offer their trading platform under their own name, but by a third-party company, about whom we know nothing.

This broker has offered spreads and bonuses that are designed to trap customers into investing with them, which is what a scammer usually does.

We would recommend that you look for another broker that is legitimate and transparent in its dealings.

Velocity Trades

2.6

User Experience

3.4/10

Payment Options

2.2/10

Security

2.4/10

Support

2.3/10

Reputation

2.6/10

Pros

• High Leverage Ratios
• Low Minimum Deposit Requirement

Cons

• Unregulated Broker
• Clone Firm
• MetaTrader 4 Platform Provided by Third Party
• Spreads Too Good to Be True
• Trading Bonuses Offered